Scotland Short-Term Accommodation Licence
The regulations surrounding short-term accommodation in Scotland have recently been amended, mandating that holiday rentals in Scotland must obtain a licence to operate.
The regulations surrounding short-term accommodation in Scotland have recently been amended, mandating that holiday rentals in Scotland must obtain a licence to operate. LovetoEscape is dedicated to assisting you in comprehending the implications of these alterations, their impact on you, and the subsequent steps you should take. For further information on the changes to the Scotland Short-Term Accommodation Licence Law, please continue reading below.
The Scottish Government has initiated a scheme requiring local councils to establish their own protocols for licensing short-term rental properties. It's crucial to be aware that there are four distinct types of licences, each tailored to different rental scenarios. These licence categories include:
- Secondary letting - renting out accommodation that isn't your main residence;
- Home letting - renting your primary residence when you're away;
- Home sharing - renting a portion of your main residence while you are absent; or
- A combination of home letting and home sharing.
When navigating the Short-Term Accommodation Licence requirements, it's helpful to consider these historical and future timelines:
- As of 1 October 2022, licensing authorities were expected to have systems in place to accept licence applications. From this date, new hosts and operators entering the short-term let market have been required to obtain a licence before offering properties for rent.
- By 30 September 2023, existing hosts and operators who were active before 1 October 2022 were required to have submitted their licence application to continue operations. For those owning multiple properties, a separate licence for each was necessary, while a single licence sufficed for multiple units at one address.
- By 1 January 2025, all existing short-term lets in Scotland must be licensed.
Be aware that these dates represent fixed points in the licensing timeline, and it's important to verify current regulations and requirements.
In terms of licence duration and renewal: The licence is valid for up to three years initially. When renewing, the term of the new licence might be longer. Given the renewal process can take between 6 to 12 months, it's advisable to start the renewal application around the second anniversary of your current licence.
The question arises: Is the licence issued to the owner or specific to the property? The answer is that the licence is granted to the owner for the specified property. Consequently, in the event of a sale, the new owner is required to obtain a fresh licence for the property. Additionally, for owners with multiple properties, each with a distinct address, a separate licence is needed for each individual property.
Potential Licence Rejection?
Potential grounds for the denial of a short-term let licence include:
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Applicant-Related Issues:
- Disqualification of the applicant, or in cases where the applicant represents an entity, any of its directors, partners, or management personnel, under section 7(6) of the relevant Act [related to a licence-related conviction], or
- Lack of suitability of the applicant (or relevant individuals in an entity) to be a licence holder;
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Involvement of Disqualified Individuals:
- Situations where the management or benefits of the activity include a person, other than the applicant, who would be ineligible for licence grant or renewal;
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Appropriateness of the Location or Equipment:
- The licence's association with activities using premises, vehicles, or vessels deemed unsuitable for the intended purpose, considering factors such as location, state of the facilities, nature and scope of the activity, expected type of users, risk of causing public nuisance, and issues related to public order and safety;
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Additional Justifiable Grounds:
- Other significant reasons that justify refusal, such as the applicant's inability to meet specific conditions laid out by the local authority.
Please be aware that in the event of a licence application being rejected, there is a mandatory 12-month waiting period before you can submit a new application. For detailed information on the specific guidelines and requirements set by your local authority, please consult the links provided.
Subsequent Actions:
It is strongly recommended that you review the pertinent guidance materials personally. Keep in mind that any summary we provide should not be seen as a replacement for your own review of these documents. Additionally, once you receive your licence number, which may be provisional or temporary, make sure to forward it to your holiday letting agent. They will then include it in your property listing.
DISCLAIMER:
LovetoEscape does not offer advice of any kind (including legal, financial, tax, or other forms). It is advised that you seek your own professional advice. LovetoEscape makes no representation or warranties regarding the completeness or accuracy of the information presented here. While efforts were made to verify the information as of the publishing date (29th November 2022), LovetoEscape cannot guarantee its accuracy. LovetoEscape shall not be liable for any loss or damage arising from reliance on any content displayed on this webpage.
Scottish Local Authority Short Term Let Licence Processes
Your local council can make some or all of their region a short term let 'control area'. This means you need planning permission as a part of your licence to let out your whole accommodation in these areas.